This section offers advice about making the transition to a reformed system. It will help you think about where you are today and plan how to get where you want to be.
Making the transition to an area- or route-contract system
This transition may involve the breaking up of a large monopoly into several smaller operators. Or it may require many small operators to amalgamate into operating units of sufficient size to be eligible to bid for route or area contracts. Encouraging smaller operators to form associations can help to achieve this.
Introducing efficiency in a monopolistic set-up
Introducing efficiency into a monopoly set-up will, in practice, normally involve a break-up of the monopoly, the introduction of new operators to compete with the incumbent, or both. Injecting competition in the market may force the monopoly to become more efficient and service oriented. If a public monopoly is to be broken up into smaller units operating in competition with one another, it is invariably more effective if the smaller units are offered for sale to the private sector.
Key issues to consider
Changes in industry structure
Forming operators’ associations
Creating a level playing field
Negotiating a purchase price